Big U.S. banks said they would chop off Wall Street arms and non-essential units if the companies were to fail, with JPMorgan slashing its broker-dealer operations by as much as two thirds.
Bloomberg News reports that twelve banks granted the public a clearer look of their living wills Monday after regulators demanded they present more convincing plans this year for dismantling themselves in the event of failure.
While the excerpts give investors and traders a better sense of what will happen in a crisis, the companies won’t learn for months whether the proposals are good enough to satisfy authorities and head off pressure to divest businesses.
'It’s not over yet', Robert Burns, a former FDIC official who now advises banks on regulatory matters for Deloitte LLP. 'We don’t know whether the details they actually provide to the agencies are satisfactory and will convince them of the firms’ resolvability'.
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